This notebook is used to analyze and answer the following supporting questions:

1. Which loyalty types has the highest spending?

2. What are the distribution of different customer segments (household type and age band) to loyalty segment?

By Loyalty

The pie chart provides a clear picture of the revenue distribution among the loyalty types over a four year timeframe. Promiscuous customers stand out as the primary revenue drivers, followed by Loyalists, while First time Buyers make a fair contribution. These insights underscore the necessity of targeted strategies that focus on maximising revenue potential from Promiscuous customers to Loyalists, while also devising effective conversion tactics to elevate the revenue contribution of First Time Buyers.

Dive deep into the purchase behavior of each Loyalty Types to give a diagnostic analysis

Identify the following:

Frequency of Transactions

The insights drawn from this line chart explain the patterns in customer transaction activities.

The declining transaction frequency among Promiscuous and Loyalist customers in 2022, along with the consistent low engagement of First Time buyers, present strategic opportunities for SuperFoodsMax. Addressing these trends requires an informed approach that integrates customer insights, loyalty enhancement strategies, and potentially re-evaluating marketing tactics to invigorate transaction frequency and foster sustained revenue growth.

Average Spending Amount per Transaction

Over the course of 4 years, from 2019 to 2022, the chart above reveals distinct variations in average spending per transactions among the three loyalty segments: Loyalist, Promiscuous, and First time buyers.

Loyalists exhibited the highest average spending per transaction at $73 in 2019. It went down to $72 in 2020 to 2022. Promiscuous customers spent an average of $70 on 2019 and it went up to $72 for 2020, remained consistent for 2021. It slightly increased to $73 for 2022. First Time Buyers spent an average of $73 at 2019. It went on a decline to $68 for 2020, and went further down to $62 for 2021 and 2022.

The fluctuation average spending pattern of First Time buyers call for concentrated efforts to enhance their conversion into loyal customers. Additionally, understanding the factors behind the consistent and higher spending of Promiscuous customers can inform strategies to promote loyalty and encourage increased spending accross all loyalty types. The consistent spending pattern of Loyal customers also indicates the need for initiatives to maintain their engagement and spending levels.

Household Types Distribution by Loyalty

The pie chart illuastrates the distribution of households accross different loyalty types within SuperFoodsMax' customer base.

  1. Loyalists customers have consistently demonstrated commitment at SuperFoodsMax. The highest proportion of Loyalists belongs to the household type '1 adult with kids', compromising of 587 loyalist customers. Additionally, "2 adults with no kids" and "Single Male" are significant contributors with 282 and 203 loyalists customers.
  2. Promiscuous customers, who tend to shop around different stores, exhibit a notably different distribution across household types. The highest count is observed in the '2 adults with kids' category, representing 811 customers. This insight implies that families with children may be more inclined to explore multiple shopping options. Additionally, '2 adults with no kids' and 'Single male' households also contribute significantly, with 415 and 290 customers respectively. This suggests that Promiscuous customers have varied household compositions and preferences.
  3. First Time Buyers, as expected, exhibit a smaller count across all household types compared to Loyalists and Promiscuous customers. However, among the limited First Time Buyers, "1 adult with kids" and "2 adults with kids" households show notable presence with 22 and 6 customers respectively. This signals a potential opportunity to convert these families into loyal customers through targeted engagement. Personalized offers, and familty-oriented promotions can drive conversion and loyalty among this group.
Age Band Distribution by Loyalty

The pie charts depicting the distribution of age bands accross different loyalty types offers valuable insights into the demographic of SuperFoodsMax's customers.

  1. Customers, Age 19-24 stands out among all the loyalty types. They consists of 59% of the Loyalist customers, 43.6% of Promiscuous customers, and 54.2% of our First Time Buyers. The strong engagement of customers aged 19-24 suggests a need for targeted strategies catering to the preferences and shopping behavious of this age group. Promotions focused on convenience, affordability, and personalization could further engage and retain these customers.
  2. The declining engagement on among the other later age band indicate changing priorities as customers enter their mid-career and family building stages.